Inflation in Germany picked up its pace in May on the back of high energy and food prices, with government data released Monday showing annual price growth climbing to its highest level in nearly 50 years.
Germany’s Federal Statistical Office said on May 30 that year-over-year inflation rose to 7.9 percent in May, up from 7.4 percent in April and the fastest pace since the beginning of 1974, when an oil crisis drove prices higher.
“Most citizens and policymakers have hardly ever seen these kinds of inflation rates in their professional lives,” Carsten Brzeski, an economist at ING, said in a note.
Inflation to Keep Rising?
On a month-over-month basis, inflation in Europe’s biggest economy rose to 0.9 percent in May, up from 0.8 percent in April and a sign that inflationary pressures have likely not yet hit their peak….